Rating agency, Fitch upgraded Validus Re’s insurer financial strength rating from “A-” to “A”. Validus Holdings also received an upgrade from “BBB” to “BBB+” for their senior unsecured debt rating.
Fitch cited the Bermuda reinsurer’s solid operating performance and sound risk management strategies as factors in the upgrade.
Calling the reinsurer’s share of global catastrophe losses significant yet manageable, the ratings agency noted: “Validus has produced an operating and underwriting profit in each year of its existence. This period includes 2011, when record levels of international catastrophe losses caused many of Validus' comparably rated peers to report significant annual underwriting and operating losses.”
Despite this, Fitch says: “Validus' ratings continue to recognise the company's significant exposure to earnings and capital volatility derived from its property catastrophe reinsurance products.”
The move follows a similar ratings upgrade of Validus Re and Validus Holdings earlier in the month by AM Best.
Fitch, Validus, rating, Bermuda, reinsurance